Understanding Your Residential Electricity Bill-Generation Charge

By June 3, 2019 Solar Education

Have you notice on your utility bill, you are paying for not only Electric Delivery and Gas Charges but also Generation Charges? What is it Generation Charge and why when you try to search online but all the explanations are vague? No worries, Soleeva Energy will break it down and explain to you throughout this blog.

The above bill is a real data of the actual bill PGE charged for an account that is on the E-1 Residential rate schedule.

Who is charging the Generation Charge?

Of course, your utility service company is charging. Notice the example above, it is listed as East Bay Community Energy Electric Generation Charges. Depending on where you are located, it might be some other organization than the example provided. In this case, the EBCE buys and builds cleaner energy such as wind or solar, then deliver the energy to PG&E, and PG&E charges their customers for the generation of this energy. Which is based on how much your energy consumption for that specific month, multiply at a fixed rate (in our example, the rate is at $0.07cent per kilowatt energy consume). Hence, every month your energy consumption varies, the amount of generation charge also changes.

How can I prevent Paying Generation Charges?

In summary, your utility service company is charging you extra to pay the third party for generating electricity in addition to what you are paying to your utility service company. A simple way to prevent paying Generation Charge is to generate your own need for electricity by installing Solar Panels on your roof! At Soleeva, we offer multiple financing options available with no upfront payment required,  advance technology that requires no maintenance needed once installed, as well as our extended 30 years warranty. Contact us today to find out more at (833)-820-8080.

Elena Chen

Author Elena Chen

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